Long-Term Stock Portfolio: Best Stocks for 10 Years

2. NVIDIA Corp. (NASDAQ:NVDA)

10-Year Revenue CAGR: 37.84%

Number of Hedge Fund Holders: 193

NVIDIA Corp. (NASDAQ:NVDA) is a global leader in GPU manufacturing and serves as a key driver of the ongoing AI revolution. While initially known for revolutionizing the gaming industry, its GPUs have now emerged as the force powering data centers, robotics, autonomous vehicles, and a range of other cutting-edge technologies.

Its Blackwell architecture represents a leap forward in GPU technology, with the flagship GB200 GPU leading the charge. The strong demand for both the Blackwell and Hopper platforms has been the primary driver of NVIDIA Corp.’s (NASDAQ:NVDA) growth in the data center segment. Sales of the H200 GPU have skyrocketed into the double-digit billions.

In Q3 2024, the company achieved a record-breaking $35.1 billion in revenue, marking a 94% year-over-year growth. While the gaming segment contributed $3.8 billion to the overall revenue, the data center segment contributed $30.8 billion following a 112% year-over-year growth. Given its strong market position, innovative technology, and impressive financial performance, NVIDIA Corp. (NASDAQ:NVDA) is considered one of the most promising stocks right now.

Polen Focus Growth Strategy highlighted NVIDIA Corp.’s (NASDAQ:NVDA) strong performance this quarter, despite significant stock price volatility driven by both positive and negative market sentiment. Here’s what the firm said in its Q3 2024 investor letter:

“In a reversal from the past two quarters, NVIDIA Corporation (NASDAQ:NVDA) represented our top relative contributor this quarter, despite the modest underperformance, declining -1.7%. In many ways, NVIDIA was a microcosm of the broader market’s heightened volatility. Beneath the placid surface, the company experienced a 27% drawdown followed by a +31% rally, only to repeat the cycle with a -21% drawdown followed by a subsequent 20% rally to finish the quarter. In our view, the stock’s volatility goes beyond fundamental business drivers, but the company in turn benefitted from increasing capital spending budgets from cloud service providers and large enterprises for generative AI (“GenAI”) infrastructure spending. Simultaneously, the stock endured weakness related to the delayed next-generation Blackwell chip, and an earnings forecast that exceeded expectations, albeit not as much as some investors hoped. While we continue to believe NVIDIA is a highly advantaged business, with significant demand for their chips and servers ahead of the need for that hardware from real-world businesses, we are cautious about its growth sustainability since it lacks recurring revenue.”